Microsoft<span> was </span>considered a monopoly in the late 90's because <span>there was effectively no other option than to use Windows, so Windows </span><span>had </span>monopoly market power, especially in the <span>"Business Operating System" market.</span>
<span>Microsoft could set prices for users, and dictate user's behavior.
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Answer:
a. Computation of net income
Particulars Amount
Service revenue $52,500
Less: Expenses
Salaries and wages expenses ($23,520)
Utilities expense ($2,600)
Rent expense ($8,740)
Advertising expense <u> ($1,510)</u>
Net Income <u>$16,130</u>
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b. Computation of comprehensive income statement
Particulars Amount
Net Income $16,130
Add: Other Comprehensive Income <u> $380 </u>
Comprehensive Income <u>$16,470</u>
Note: Dividend will not be included as it forms part of Income statement
Answer:
<em>Frictional unemployment created by sectoral shifts </em>
Explanation:
Frictional unemployment <em>happens throughout a phase when employees are looking for new jobs or are transferring from old jobs to newer ones.</em>
It can even be defined as natural unemployment as it is not directly linked to factors that contribute to an economy that is performing poorly.
A new global trade agreement leads to higher demand for export-sector workers and lower demand for workers in import-competing sectors. Workers need time to change sectors, and sectoral shifts lead to frictional unemployment
Answer: Investment for Desmond and US foreign direct investment.
Explanation:
This is an investment for Desmond because he owns the store. He is therefore the equity shareholder and investor into the store.
It is also a U.S. Foreign Direct Investment (FDI) because FDI is what describes a situation where an entity from a country goes to another country and sets up a business there that they will own and operate. Desmond being a U.S. citizen is operating a store in another country so this is U.S. FDI.
Answer:
The correct answer are A and E.
Explanation:
Cost leadership is where the company intends to be the lowest cost producer in its industrial sector. The company has a broad picture and serves many segments of the industrial sector, and can still operate in related industrial sectors. The breadth of the company is often important for its cost advantage. The sources of cost advantages are varied and depend on the structure of the industrial sector. They can include the persecution of economies of scale of own technology, preferential access to raw materials.
A successful cost leadership strategy is disseminated throughout the company, as evidenced by high efficiency, low overhead, limited benefits, waste intolerance, thorough review of budget requests, extensive control elements, rewards linked to cost concentration and extensive employee participation in attempts to control costs.
Some risks of following cost leadership is that competitors could mimic the strategy, decreasing the profits of the industry in general; that technological advances in the industry could make the strategy ineffective or that the interest of the buyers could be diverted towards other characteristics of differentiation besides the price.
